It’s what’s inside that matters

Barbara Rossi finds out more about International Automotive Components (IAC), the third-largest automotive components and systems supplier in the world and the only global supplier with an exclusive focus on interiors. Headquartered in Luxembourg, the group employs more than 22,000 people worldwide.

IAC operates 75 manufacturing facilities in 16 countries, has 90 locations in 17 countries and 15 design and technical centres. It serves all the major multinational automotive OEMs and lists General Motors, Ford, Chrysler, Fiat, Volvo, Volkswagen, Audi and Porsche as its largest customers. IAC, whose products are used on more than 300 platforms, has manufacturing operations organised into three geographical areas – Europe, Asia and North America.

IAC believes that this operating structure makes it more responsive to customers’ needs and the changes that take place within the global automotive components industry, as well as within specific regions. In fact, the regional management teams, as well as maintaining key customers and supplier contacts in their respective markets, centrally manage aspects of IAC’s operations, while allowing the operating segments to have enough flexibility to promote an entrepreneurial environment.

The IAC group was formed in early 2006 by the US financier Wilbur L. Ross, prior to the acquisition of certain European manufacturing facilities of Collins & Aikman Corporation (C&A), an acquisition which was then completed in March 2006. In October 2006, IAC’s European operations acquired all of the assets of the European Interior Systems Division of Lear Corporation. In Europe, IAC has on 6000 employees, five design and technical centres and 29 main facilities in Belgium, the Czech Republic, Germany, the Netherlands, Poland, Romania, Slovakia, Spain, Sweden and the UK. Regional headquarters are in Krefeld (Germany) and engineering facilities and customer centres are located in Germany, Sweden and the UK.

Global expansion

IAC expanded its operations in Asia in 2006, when Wilbur L. Ross acquired Mitsubishi Belting Kaschihin (MBK), now called IAC Japan Co. Ltd. This acquisition is of particular significance, as it was the first of a major Japanese automotive interiors company by a western auto supplier. The remainder of IAC Asia operations includes manufacturing and engineering locations in China, India and Japan. In China, IAC has three joint

venture relationships, referred to as SIAC, Songjiang, and Wuhan. In India, IAC began operations in 2008 with the opening of an engineering centre in Pune. Approximately 14,000 people are employed by IAC in Asia, a continent in which the group has 14 manufacturing facilities and four design and technical centres.

As mentioned, IAC is also present in North America, where in December 2006 Wilbur L. Ross announced a further expansion of the IAC Group North American operations with the acquisition of the North American Interior Systems division of Lear, then completed in April 2007. This was followed by the acquisition by IAC of the North American Carpet and Acoustic Division from Collins & Aikman. IAC now employs 15,000 people in North America and has 32 manufacturing facilities in the USA, Canada and Mexico, in addition to six design and technical centres. In the North American segment IAC occupies market leadership positions in door and trim systems; instrument panels and cockpits; flooring and acoustic systems; and headliner and overhead systems. IAC, which counts Chrysler, Honda, Ford, Toyota, GM, Hundai, Volkswagen, Nissan, and BMW among its leading North American OEM customers, was ranked 17 on the 2011 Automotive News Top 100 Suppliers to North America list. Furthermore, it was ranked first as North American Automotive Injection Moulder by Plastic News 2011.

The range of products manufactured by IAC includes door and trim systems, instrument panels, consoles and cockpits, flooring and acoustic systems, and headliner and overhead systems, as well as complementary exterior components. All the products are designed to improve comfort and convenience, as well as enhancing safety, and balancing cost and weight specifications. Moreover their design is aimed at increasing personalisation and the use of environmentally sustainable materials, all factors which can critically influence consumer purchasing decisions for all classes of vehicles. IAC provides its customers with unparalleled manufacturing reach and ability. The approach is solution-based, innovative and built on stringent best practices and commitment to customers’ success in the global marketplace. IAC can offer broad manufacturing capabilities and technologies, including compression, injection and blow moulding, as well as various trimming and finishing methods. This portfolio of capabilities and technologies allows the group to be able to provide a wide range of product solutions, across various price points, to meet customer design and cost needs.

New developments

Recent developments have included the building of a new state-of-the-art greenfield manufacturing facility in Bals, Romania, for the production of components to support the Ford Motor Company’s production of two new passenger cars at its Romanian plant of Craiova as well as other automotive customers in the region. This project was supported by state aid received from the Romanian government.

IAC is also proud of the fact that at the January 2012 North American International Auto Show in Detroit a handful of vehicles stood out as media and industry favourites, three of which featured complete interior systems supplied by the IAC Group. The first of these is the Range Rover Evoque, which was awarded

the title of North American Truck of the Year, a vehicle for which IAC delivers significant content, including the instrument panel, console, cockpit assembly, overhead system, wheel arch liners and trunk trim. IAC also received positive recognition for the 2013 Fusion model, which Ford presented at the event. Again, IAC provides a number of components to this newly redesigned vehicle, including the instrument panel, centre console, door panels, throw-in mats, hard trim, ducts and package tray. In addition to this, IAC has also significantly contributed to the interior of another vehicle which was successfully unveiled at the Auto Show, Chrysler’s all new Dodge Dart compact car, the first Chrysler Group vehicle built on a Fiat Group architecture. IAC supplies the vehicle with its instrument panel, centre console, door panels, hard trim, overhead system, carpet, throw-in mats, IP ducts, trunk trim and dash and package tray silencers. n